How to Recognize a Good Supplier When Sourcing Abroad

Each month, we publish several of InTouch Manufacturing Service’s top articles. They’re summarized below, but links to the full articles can be found underneath each summary.

How to recognize a good supplier when sourcing abroad

Sourcing abroad can be challenging and at times might even seem random. With so many suppliers in any given country, sometimes sifting through them all and finding an appropriate one is almost like finding a needle in a hay stack.

Most importers don’t overlook the importance of ensuring their factory is technically capable of producing goods according to their specifications. But there are a lot of technically competent factories. If technical competency was the only measurement of a good supplier, sourcing abroad would be a lot easier.

Don’t neglect picking the right supplier to manufacture your product abroad. Choosing the wrong supplier can have widespread effects on your products, brand and monetary success. So what metrics should you use to separate the good suppliers from the bad? Find out in the link below:

Do you want to cut costs? Relying on the factory’s internal QC staff to catch errors might seem like a good idea at the time, but you might regret it later. Without the accountability provided by a third-party, factories might knowingly ship you defective goods. And you’ll end up losing a lot more money when you receive a high proportion of products that you can’t sell (related: Why Most Importers Don’t Rely on Factory QC Staff for Inspection).

At first, hiring a third-party inspection company can seem superfluous. But check out some of the benefits of third-party inspection in the link below. You might thank yourself later when your order ships on time and just as you intended.

Supplier relationships built to last

In today’s cutthroat global trade environment, a positive relationship with your supplier can make all the difference in your sourcing experience. These days, a lot of companies have experience working with suppliers abroad, but for many it’s still a tedious and stressful process. And it’s not all up to the supplier to cater to the buyer. Both parties can take actions to improve their relationship.

Some importers hold the misconception that third-party QC companies play the driving role in communication between the buyer and seller. And while it’s true that QC companies often have local staff with expertise working with factories, the importer still must play a central role in communicating with factory staff (related: Why QC Inspectors Rarely Work with Chinese Factory Staff to Fix Issues).

A good relationship with your supplier often results in:

Better product quality

Decreased shipping delays

And a competitive edge over other importers

So what can you do to set your business apart and develop a good relationship with your supplier? Find out in the article linked below:

Taking environmental compliance seriously in your supply chain

We’ve all seen the photos of the smog that penetrates China’s skies. This air pollution didn’t pop up overnight. Rather, manufacturing has played a large role in contributing to environmental degradation in China and around the world over the years. Manufacturing is interconnected with the environment in many ways, since the natural environment affects manufacturing production, too.

Consumers consider environmental standards more and more in choosing which products to buy

Retailers are catering to these consumers by selling more sustainably produced goods

Manufacturers enforce environmental standards on their suppliers to meet customer and retailer expectations

But for the importer who wants to monitor their supplier’s environmental compliance, it can be difficult to know how to develop your environmental management system. Fortunately, you can start by holding your supplier accountable to a few widely-recognized environmental standards.

Adhering to environmental standards can improve your business’ reputation and open up business avenues with environmentally-conscious retailers. Don’t get left behind while other importers enforce environmental standards on their suppliers. Check out some ways you can monitor your environmental management system in the link below:

Managing complications with sub-suppliers

When you place your order with a factory, you might unknowingly be working with several sub-suppliers as well. Whether you realize it or not, many factories specialize in producing only certain components of a product and work with sub-suppliers in order to fill production needs for other components of the same product. And it’s not always clear how many sub-suppliers are involved in production, nor the standards that they uphold, since suppliers and trading companies commonly conceal this information.

Likely, the more sub-suppliers involved in the production of your order, the harder it will be to keep your specifications clear and maintain quality. But using sub-suppliers can also save you money. If you’re up for the challenge, there are ways to handle the complications of working with sub-suppliers and come out on top. Find out how in the link below: